REA is a stock/business we like at MM, and we raise our hands to say we took profit too early in 2023. The stock rallied 2.6% on Wednesday, making it the 5th best performer on the main board, interestingly on a day when the correlated tech stocks struggled and property names trod water. However, as we can see from its advance since 2022, it’s a stock that often corrects $20-$30; hence, chasing it around $185 isn’t overly exciting. This is one of many stocks that illustrate that the current market rewards investors who buy dips and sell spikes to a lesser extent.
- We can see REA making new all-time highs this FY, and from a risk/reward perspective, we would be buyers around $170 looking to trim/sell around $200 – the horse may have bolted on the buy side.
MM is bullish on REA short-term
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